UNESCO SCIENCE REPORT

21 . South Asia
Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan, Sri Lanka
South Asia
Dilupa Nakandala and Ammar Malik
INTRODUCTION
Healthy economic growth
To the outsider, the seven economies of South Asia covered
in the present chapter may appear to possess similar
characteristics and dynamics. In reality, however, they are
quite diverse. Afghanistan, Bangladesh and Nepal are lowincome
economies, Bhutan, Pakistan and Sri Lanka are lower
middle-income economies and the Maldives is an upper
middle-income economy.
According to the 2013 UNDP human development index, only
Sri Lanka has achieved a high level of human development.
Bangladesh, Bhutan and Maldives enjoy medium levels
and the remainder are still at a stage of low development.
Between 2008 and 2013, human development progressed in
Bangladesh, the Maldives, Nepal and Sri Lanka but receded
slightly in Pakistan, mainly due to the unstable security
situation in parts of the country.
Three out of four South Asians are Indian. This single country
accounts for 80% of the region’s GDP of US$ 2 368 trillion. As
India is the object of a separate chapter (see Chapter 22), the
present essay will focus on the other seven members of the
South Asian Association for Regional Cooperation (SAARC).
Excluding India, GDP grew by a healthy 6.5% in the region
in 2013. Sri Lanka reported the fastest progression (7.25%)
and the Maldives (3.71%) and Nepal (3.78%) the slowest.
GDP per capita, on the other hand, has risen fastest in the
Maldives, followed by Sri Lanka (Figure 21.1).
FDI insufficient but trade growing
The rise in export and import trade volumes in recent
years confirms the growing integration of South Asia in
the global economy. Bangladesh has even managed to
outperform its neighbours, with its exports progressing
from 16% to 19.5% of GDP between 2010 and 2013.
Moreover, Bangladesh managed to maintain a stable
level of exports and foreign direct investment (FDI) at
the height of the global financial crisis in 2008–2009.
Amjad and Din (2010) have identified the insufficient
diversification of exports and low domestic consumption
as shock amplifiers during the global crisis; for them,
sound economic management helped maintain macroeconomic
stability in Bangladesh, despite global food and
fuel price hikes over this period.
Chapter 21
Figure 21.1: GDP per capita in South Asia, 2005–2013
In current PPP$
12 000
Maldives 11 657
10 000
Sri Lanka 9 738
8 000
6 801
Bhutan7 405
6 000
5 202
India 5 418
4 000
2 000
4 065
3 481
2 904
1 723
1 520
1 020
Pakistan 4 602
Bangladesh 2 948
Nepal 2 245
Afghanistan 1 946
0
2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: World Bank’s World Development Indicators, April 2015
567